BILL NUMBER: AB 2514	CHAPTERED  09/30/00

	CHAPTER   1017
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 26, 2000
	AMENDED IN SENATE   JUNE 14, 2000
	AMENDED IN SENATE   JUNE 12, 2000
	AMENDED IN ASSEMBLY   APRIL 25, 2000

INTRODUCED BY   Assembly Member Thomson
   (Coauthors:  Assembly Members Cardoza, Florez, Machado, Maldonado,
and Reyes)
   (Coauthor:  Senator Costa)

                        FEBRUARY 24, 2000

   An act to add Chapter 4.7 (commencing with Section 39760) to Part
2 of Division 26 of the Health and Safety Code, relating to
agricultural biomass, and making an appropriation therefor.

      (Approved by Governor September 30, 2000.  Filed with
Secretary of State September 30, 2000.)

   This bill would create a $10 million account administered by the
Department of Food and Agriculture to provide incentives for
businesses that use rice straw for agricultural biomass projects.  I
have reduced the appropriation from $10 million to $2 million.
   This measure will help California utilize agricultural biomass as
a means of avoiding landfill use, preventing air pollution, and
enhancing environmental quality.  It will help to create hundreds of
direct and indirect jobs in Northern California communities with
historically high levels of unemployment.  AB 2514 will foster
alternative uses for rice straw and create new markets for recycled
rice straw products.
                                                 GRAY DAVIS, Governor


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2514, Thomson.   Agricultural biomass and rice straw.
   Existing law establishes the Rice Straw Demonstration Project
Fund, and requires the State Air Resources Board to administer a
demonstration program for the development of new rice straw
technologies through the awarding of grants.
   This bill would create the Agricultural Biomass Utilization
Account in the Department of Food and Agriculture Fund, to be
administered by the Department of Food and Agriculture in
consultation with the state board and the California Integrated Waste
Management Board.
   The bill would appropriate $10,000,000 from the General Fund to
the account for the purposes of providing incentives for businesses
that utilize agricultural biomass.  The account would also include
any moneys secured by the Secretary of Food and Agriculture for those
purposes.  The $10,000,000 appropriated from the General Fund, minus
administrative costs of up to 7%, would be required to be utilized
to provide grants to persons that utilize rice straw for various
purposes.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 4.7 (commencing with Section 39760) is added to
Part 2 of Division 26 of the Health and Safety Code, to read:

      CHAPTER 4.7.   AGRICULTURAL BIOMASS UTILIZATION ACCOUNT

   39760.  The Legislature hereby finds and declares that the rice
industry has led many other commodity groups in developing
alternatives to open-field burning.  In order to aid in the
continuation of this role of leadership within the agricultural
industry and to enable the transition to a free-market utilization of
biomass, funds are needed to provide grants to persons that utilize
agricultural biomass and rice straw.
   39761.  For the purposes of this chapter, the following terms
mean:
   (a) "Department" means the Department of Food and Agriculture.
   (b) "Secretary" means the Secretary of Food and Agriculture.
   39762.  (a) (1) The Agricultural Biomass Utilization Account is
hereby created in the Department of Food and Agriculture Fund.
   (2) The sum of 10 million dollars ($10,000,000) is hereby
appropriated from the General Fund to the Agricultural Biomass
Utilization Account for expenditure for the purposes identified in
subdivision (b).
   (b) The account shall be administered by the department, in
consultation with the State Air Resources Board and the California
Integrated Waste Management Board, for the purpose of providing
grants to persons that utilize agricultural biomass as a means of
avoiding landfill use, preventing air pollution, and enhancing
environmental quality.
   (c) Moneys in the account shall include moneys transferred from
the General Fund pursuant to subdivision (a) and any moneys solicited
by the secretary from other sources.
   (d) The secretary shall actively solicit funds from other federal,
state, and private sources with the goal of initially supplementing
and eventually supplanting the appropriation from the General Fund
made pursuant to subdivision (a).
   (e) The department may implement similar grant programs for other
commodity groups that are used for the purposes set forth in
paragraphs (1) to (6), inclusive, of subdivision (e) of Section
39763.
   (f) The department shall not utilize more than 7 percent of the
funds described in subdivision (a) for the administration of the
account.
   39763.  (a) The funds appropriated by paragraph (2) of subdivision
(a) of Section 39762, less administrative costs, shall be dedicated
for grants to persons that utilize rice straw.
   (b) Grants shall be provided pursuant to this chapter in a manner
to be determined by the department, and shall include, but shall not
be limited to, grants on a per-ton basis and a per-project basis.
   (c) On or before July 1 of each year, the secretary shall set the
per-ton grant level in an amount of not less than twenty dollars
($20) per ton of rice straw so utilized.
   (d) Grants shall not be provided pursuant to this section for the
purchase of any rice straw for which a tax credit has been claimed
pursuant to Section 17052.10 of the Revenue and Taxation Code.
   (e) A per-ton grant may be provided pursuant to this chapter only
if the applicant is the "end-user" of agricultural biomass.  For
purposes of this subdivision, "end user" means a person who uses
agricultural biomass for any of the following purposes:
   (1) Processing.
   (2) Generating energy.
   (3) Manufacturing.
   (4) Exporting.
   (5) Preventing erosion.
   (6) Any other environmentally sound purpose, excluding open-field
burning, as determined to be appropriate by the department.
   (f) Criteria to be considered by the department in determining
whether to award a grant pursuant to this chapter shall include, but
shall not be limited to, the following:
   (1) Quantity of biomass to be utilized.
   (2) Whether the proposed use offers other environmental or public
policy benefits, including but not limited to, landfill avoidance,
pollution prevention, electrical generation, and sustainability.
   (3) The degree to which the proposed grant would assist in moving
the commodity group toward an eventual free market utilization of
biomass without the assistance of government.
   (g) The secretary shall select grant recipients in consultation
with the State Air Resources Board, the Integrated Waste Management
Board, and the advisory committee created pursuant to subdivision (l)
of Section 41865 from a list of potential grantees recommended by
the Department of Food and Agriculture.
